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Bobby Jindals Troubles at Home
Gov. Bobby Jindal has a plan: Do for the country what hes done for Louisiana. Cut taxes and cut the government workforce and the economy will bloom, he promises. Its a message hes peddling as he lays the groundwork for a presidential run. Indeed, as Jindal is quick to say, private-sector job growth and the economy in Louisiana have outpaced the national average during his tenure as governor. Im a fiscal conservative, he told the influential Conservative Political Action Conference last year, in explaining these successes.
But heres what Jindal doesnt say: Louisianas budget is hemorrhaging red ink, and its getting worse. He inherited a $900 million surplus when he became governor seven years ago, and his administrations own budget documents now show the state is facing deficits of more than $1 billion for as far as the eye can see. There are no easy solutions today because Jindal has increasingly balanced the budget by resorting to one-time fixes, depleting the states reserve funds and taking money meant for other purposes.
There are all kinds of tricks in the budget, said Greg Albrecht, the state legislatures chief economist, a nonpartisan position. Meanwhile, the states unemployment rate has risen from 3.8 percent when Jindal took office, a point below the national average then, to 6.7 percent todaynearly a full point higher than todays national average. Jindal omits these inconvenient facts when he bashes President Barack Obama and Washington for bankrupting the federal government and mismanaging the national economy.
Republican state legislators are particularly scathing in saying Jindal no longer exercises leadership, but they dont want to go on the record for fear of losing their choice committee assignments or having the governor kill their pet projects. (A governor in Louisiana has so much power that he appoints the speaker of the House and the president of the Senate, along with committee chairmen.) Jim Richardson, an economist at Louisiana State University who sits on a four-member board that determines the states available revenue, predicted that next years governorregardless of partywill have to call a special session on the budget, as the first order of business, to clean up what Jindal has left behind.
The pledge wasnt an issue when Jindal became governor in 2008 and the state had a healthy budget surplus thanks to the taxes produced by massive federal government and private insurance spending following Hurricane Katrina and Hurricane Rita. The state legislature cut income taxes for higher-end earners by a total of about $700 million per year. Jindal was not an initial supporter, perhaps because of warnings that the surplus would not last as the outside spending tapered off. He went along with the plan, though, and now takes credit for it.
When the national recession hit, Louisiana lost about $1 billion in revenue as consumers and companies spent less. That forced Jindal and the state legislature to take a sharp knife to a state budget in which much fundingsuch as for K-12 schools and additional pay for firefighters and policeis protected constitutionally and thus invulnerable to drastic cuts. Refusing to raise revenues to cover the shortfall, Jindal instead turned his sights on cutting health care for the poor and slicing funding for the states public colleges and universities.
It was not enough. He then shaved another $341 million in the middle of the 2009 budget cycle to avoid ending the year with a deficit. Jindalbuoyed by the tax cuts, his anti-government rhetoric, a growing state economy and his opposition to abortionwon reelection in 2011 with 65 percent of the vote.
Jindals cuts to the public colleges and universities have been the deepest of any state over the past eight years, according to the Center on Budget & Policy Priorities. Raising tuitionwhich does not count as a tax increase, although the effect is the samehas filled most of the gap. Tuition at the public institutions will be 90 percent higher in 2015 than when Jindal took office.
Reluctant to pay the political price to cut more and sticking by the pledge has put Jindal in a fiscal box. His solution: Rely increasingly on what Richardson, the LSU economist, calls all sorts of gimmicksbalancing the budget through one-time sales of state property, legal settlements with companies sued by the state, the elimination of vacant state jobs and a tax amnesty program. Doing it for one year is not bad policy, said Richardson. But doing it for four or five years is not sustainable.
Jindal administration has taken about $7 million per year away from the state park maintenance fund. The result: a $21 million backlog in repair work for state parks.
Jindal bragged in a 2008 Wall Street Journal op-ed that he had ended the practice of using one-time money to fill budget gaps, but he now says the state legislatures budgeting practices have forced him to resort to the device. This years budget has $1.1 billion in money that wont be available next yearfour times as much as the 2013 budget.
When Jindal took office, the Medicaid Trust Fund for the Elderly had $800 million. That money is now gone. The Office of Group Benefitsthe health insurance program for current and retired state employeeshad $500 million in 2011.
Its staggering the number of days hes gone. I dont know what hes doing. It does not appear that the budget problems are on his radar screen.
Read more: http://www.politico.com/magazine/story/2015/02/bobby-jindal-campaigning-114948.html#ixzz3R1bDg8S4
Why this is like the Prefect Republican record to run for Republican President.
Taxs cuts for the very rich, gutting education, gutting healthcare, massive deficits and an imploding economy.
/faceplam